Pricing models
Pricing models are the calculation methods that Zenskar offers for pricing presets.Map of concepts
Related modules
Pricing models uses the following modules:
The following modules use pricing models:
Pricing models: how an amount is calculated
A pricing model is the method that a pricing preset uses to calculate an amount from a quantity. Every pricing preset has one pricing model. Zenskar offers five pricing models:
The per-unit pricing model is the default. All five pricing models are available for both product types.
A pricing preset cannot change after you create it, so its pricing model cannot change either. A product that needs a different pricing model needs another pricing preset. See Pricing presets.
Zenskar calculates the charges of a line item period by period. For each period, the pricing model receives the quantity of that period and returns the amount of that period. The line item supplies the quantity, either as a fixed quantity or from metered usage. See Line item: quantity.
The pricing model is one step in the calculation of a line item. Other settings of the line item can change the quantity before the pricing model calculates, and the amount after it. See Line item: quantity, Line item: minimum commitments, and Line item: discounts.
Per-unit pricing model: the same price for every unit
The per-unit pricing model multiplies the quantity by one price for each unit. It is the default pricing model of a new pricing preset.Per-unit pricing model
How the per-unit pricing model calculates amounts for point-in-time and period-of-time products.
Percent pricing model: a share of an amount
The percent pricing model charges a percentage of the quantity. It fits a quantity that is an amount of money, such as the value of the transactions that a billable metric measures.Percent pricing model
How the percent pricing model calculates amounts for point-in-time and period-of-time products.
Tiers: ranges of quantity
A tier is a range of quantity that has its own price per unit. The volume pricing model and the tiered pricing model use tiers. The volume pricing model selects one tier for the whole quantity. The tiered pricing model splits the quantity across the tiers. A pricing preset with tiers has at least one tier. The first tier starts at 0. Each following tier starts where the previous tier ends. Each tier ends at an upper limit that is higher than the upper limit of the previous tier. The last tier has no upper limit, so it covers every quantity above the previous tier. The following tiers have three ranges:
A quantity equal to an upper limit, such as 1,000, belongs to the lower tier. The volume pricing model can move it to the higher tier with the tier boundary.
The price per unit of a tier can be 0 or more. A price per unit of 0 makes the units of that tier free. For the fields of the tier table, see Volume and tiered fields.
Tier-reset period: when the count starts again
The tier-reset period is the length of time after which the quantity counted against the tiers starts again from 0. A pricing preset has a tier-reset period only when the product is a point-in-time product and the pricing model is volume or tiered. Within one tier-reset period, the quantities of its billing periods add up. When the next tier-reset period starts, the count starts again from 0, in the first tier. A tier-reset period of one quarter, with monthly billing and 600 units in each month, counts the following quantities:
With the tiers in Tiers, the count passes the upper limit of the first tier in February. The volume and tiered pricing models use the count in different ways. See Volume pricing model and Tiered pricing model.
The tier-reset period is monthly, quarterly, semi-annual, annual, or a custom length in whole months or years. It is monthly by default.
With the recurring quantity strategy, the tier-reset period must be a whole multiple of the quantity cadence of the line item. It must also align with the billing cadence: one must be a whole multiple of the other. See Line item: billing.
A period-of-time product has no tier-reset period. Its tiers apply to the quantity of each pricing period.
Volume pricing model: one price for every unit
The volume pricing model uses the total quantity to select one tier. Every unit then costs the price per unit of that tier. A larger quantity can move all units to a lower price.Volume pricing model
How the volume pricing model selects a tier, and how the tier boundary decides where a quantity falls.
Tiered pricing model: a price for each tier
The tiered pricing model splits the quantity across the tiers. Each part of the quantity costs the price per unit of its own tier. The amount always grows with the quantity.Tiered pricing model
How the tiered pricing model fills the tiers, and how the count continues within a tier-reset period.
Dimensional pricing model: a price for each combination
The dimensional pricing model charges each combination of dimension values with its own price. Each of those prices uses the per-unit, percent, volume, or tiered pricing model.Dimensional pricing model
How the dimensional pricing model splits usage by combination, and how the fallback price works.